Publisher steps up cost cuts after drop in sales

The publisher of the Daily Mirror newspaper is to increase its costs savings target after reporting a fall in half-year sales, profits and circulation.

Trinity Mirror saw pre-tax profits drop 15% to £38.2m in the six months to 2 July, while revenue fell 15% to £320m
Circulation revenue fell by 6.3% on a like-for-like basis, with the drop partially mitigated by cover price increases, the group said.
The Daily Mirror’s circulation fell by 11% and the Sunday Mirror and Sunday people were down by more than 15%.
Print revenue fell by almost 12% to £255m, but digital revenue was up by almost 6% to £41m.
The group also reported an 18% fall in print advertising revenue and a 23.5% drop in classifieds.

It said it had delivered cost savings of £10m for the first half of 2017 and was ramping up its target for the year to £20m – an increase of £5m.
The provision for the phone hacking scandal rose £7.5m to £15.4m and Trinity Mirror said there was still a degree of uncertainty over how much the matter would cost.
Chief executive Simon Fox said: “Whilst the trading environment for print in the first half was volatile, we remain on course to meet expectations for the year.
“I continue to anticipate that the second half will show improving revenue momentum as we benefit from initiatives implemented during the first half of the year.”
Last year, the group scrapped a new female-focused national paper, The New Day, after less than 10 weeks after poor sales.